KUALA LUMPUR (Dec 6): A jointly-owned unit of MMC Corp Bhd and Gamuda Bhd is seeking a court declaration that the arbitration notice filed by Emrail against the company in relation to the Ipoh-Padang Besar Electrified Double Track Project was invalidly issued.

The unit, MMC-Gamuda Joint Venture Sdn Bhd (MGJV), said it has filed an originating summons at the Kuala Lumpur High Court to seek that the notice be declared as such, and that Emrail is not entitled to commence arbitration proceedings against MGJV.

"MMC will make further announcements if there are any material developments on the above matter," MMC and Gamuda said in separate stock exchange filings this evening.

The notice was served to MGJV on Oct 25 by Emrail, formerly known as Time Salam Sdn Bhd, premised on Emrail's alleged dispute and differences arising out of conditions of the contract which was inked in 2010 to build, complete, test, commision and maintain the track works for the project.